Altico Capital invests Rs 130 crore in two residential projects

Altico Capital has closed a Rs 50 Cr transaction with Noida based Lotus Greens group for a residential project named ‘Arena I’,while in another deal, the fund invested Rs. 80 crore with Mumbai based Shree Sai group for a residential project named ‘The Nest’ In DN NagarSobia Khan&Ravi Teja Sharma | ET Bureau | May 20, 2016, 08:12 IST

Altico Capital has closed a Rs 50 Cr transaction with Noida based Lotus Greens group for a residential project named ‘Arena I’, which is part of a larger Sports City development at Sector-79, Noida. The funding proceeds will be utilized for construction of the project. The fund has earlier invested Rs 450 cr, with the builder.

Sanjay Grewal, CEO for Altico Capital, “This is first investment in the NCR region after 15 months. We believe that it will take some time for sales to pick up in NCR and therefore will be very deliberate in putting capital to work in this market.

Arena I is a mid-segment project, with offerings of 3BHK and 4 BHK apartments and total saleable area of 1.9 mm sqft. It is located in an upcoming residential zone, with projects from various reputed developers in the region. The project location, specifications, significant sales progress and current construction progress were the key drivers for Altico Capital’s investment in the project.

In another deal, the fund invested Rs. 80 crore with Mumbai based Shree Sai group for a residential project named ‘The Nest’ In DN Nagar, Andheri West for refinancing the existing lender and for finishing the construction of the project. The project is being developed by Shree Sai in a joint venture with Wadhwa Holdings and is being marketed under the Wadhwa brand name.

“We will look at last mile financing for projects in advanced stages of construction and sales. We will also evaluate and fund Projects wherein credible corporate have tied up, under joint development arrangements, with existing land owners and developers to market and construct projects under their corporate brands,” said Grewal.

Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.